Bleak: Our Long Term Financial Outlook
by Veronique de RugyWhile Nancy Pelosi is excited that health care reform is only going to cost us $900 billion over ten years, I wonder how we are going to get out of the current fiscal mess we’re in. Seriously. The GAO has a new report on how our long term financial situation is going to look like. A short sample:
“The federal budget deficit soared to a record $1.4 trillion in the fiscal year that ended in September, a chasm of red ink unequaled in the postwar era that threatens to complicate the most ambitious goals of the Obama administration, including plans for fresh spending to create jobs and spur economic recovery.
Still, the figure represents a significant improvement over the darkest deficit projections, which had been as much as $400 billion higher earlier this year, when the economy was wallowing in recession. Since then, the outlook has brightened and a government bailout has successfully stabilized the nation’s troubled financial sector. In a report released Friday, Treasury Department officials said the government had spent $132 billion less than expected in August, due primarily to a drop in anticipated spending on the banking bailout.”
You’ve got to love the “the glass is half-full” outlook of the GAO!
And yet, they do show that without social security and Medicare-Medicaid reforms things will get much much worse and fast.
Check out the charts in the report, they will stop you from having kids.
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15 Comments
There are times when I wonder whether the administration is truly trying to forestall a recovery. If the economy really began to grow, it would send interest rates through the roof. There isn't much in competition with government debt right now. With all the debt Treasury issues now, the impact would be felt very quickly if much started to happen in the private sector. This mess is going to take a LONG time to unwind.
In Recognition of Unprecedented Debt Handed to Nation’s Youth, Nickelodeon Replaces Trademark Green Slime with Red Ink: http://optoons.blogspot.com/2009/10/in-recognitio...
900 BILLION
What kind of crack are these people smoking? Does everyone understand how much 900 Billion is? That is more money then would fit in ALL of our houses combined 
Stop the corruption, sign our petition please
http://myfreepress.net/petitions/dont-tread-on-me
I already have my kids and seeing the financial outlook for this country in black and white makes me very, very ill. Like most parents, I want to leave this country better than I found it for my kids. Although this is very bleak, I'm not ready to give up yet.
There was a political ad from a few years back in which a politician was being tried by children for running up such a debt that it ruined the country and those kid's futures. I searched YouTube using several different terms without finding it, which is too bad, as it was highly effective. In any event, I think such a reckoning is coming. Part of me doesn't want to live to see it, and part of me does.
Lawyers make lousy economists.
Makes me think of a movie quote… 'Run away!'
The projection shows the deficit bouncing back then falling off again. I just don't see it bouncing back like that. I hope the graph is WAY OFF.
People! He's not the real messiah!
These estimates from the government are not even proper accounting. If they had to use the same GAAP standards as companies are required to use, the debt and deficit would be larger by orders of magnitude. They cook the books by not accruing unfunded and future liabilities. If a business executive did this, he would be prosecuted for fraud.
We need Truth In Government Accounting. All taxpayers should receive financial statements for the prior fiscal year along with their annual tax bill.
So are they still blaming BUSH? LMAO
As for the GAO Report……Propaganda. Our Government is only providing us with thier perspective which has been mis-leading to Americans.
Kasteer, we need the coconut shells for the horse hoof beats to shows what a comedy of errors this adminstration is…
LOL! You got it!
I'm glad someone caught the reference.
Has the Reason Foundation been co-opted by right wing Republicans? Because my impression from reading Reason magazine the past few years is that the Libertarians have decided to become tools of the Republican Party.
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Financial crash?
Don't worry. You can always eat your dog:
HOW MUCH IS THAT DOGGY IN THE WINE SAUCE?
http://naturalfake.wordpress.com/2009/10/22/how-m...
My niece and her husband live in Richmond, KY. They just got turned down for a SNAP Food credit increase ( He's diabetic and they both live on his SSI, only $1100 a month). Which would you prefer: An extra $100 for dietic food, or $180,000 a month for Hospital costs if or when John has a Diabetic blackout or slips into a Coma? Taxpayers already pay for his SSI and VA, so its your decision. If Obama wants to prevent complications associated with diabeties, obesity, and other ailments, wouldn't it make sense to issue specified food vouchers/ Dietic foods/Care boxes to VA clinics,Food pantries and other institutions that address the needs of Low income Americans? Why is it that Government Commodities ( often delivered to Non Profit Organizations) are extremely high in Sodium and Carbs?
Worst of all, not ONE version of the Healthcare proposals include incentives to encourage responsible, healthy lifestyles: Therefore, Costs will skyrocket.
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